FRGT stock plunges to 52-week low, touches $0.7 amid steep decline

Published 22/05/2025, 20:20
FRGT stock plunges to 52-week low, touches $0.7 amid steep decline

In a tumultuous turn of events, shares of China Internet Financial (ticker:FRGT) have plummeted to a 52-week low, reaching a distressing price level of $0.7, with concerning financial metrics showing negative EBITDA of -$5.86M and weak gross profit margins of -26.1%. According to InvestingPro analysis, the company appears undervalued despite these challenges. This latest price point underscores a harrowing period for the company, which has seen its stock value erode by an alarming 95.8% over the past year. Investors have been grappling with a series of challenges that have beset the firm, ranging from regulatory pressures to shifting market dynamics, all of which have contributed to the stock’s steep descent from its previous positions. InvestingPro data reveals the company is quickly burning through cash with a concerning cash return on invested capital of -0.8. The current low represents not just a significant drop from the company’s past financial heights but also a stark indicator of the volatility and uncertainty that continue to cloud the tech and financial sectors in China. (Get access to 11 more exclusive InvestingPro Tips for deeper insights into FRGT’s financial health and future prospects.)

In other recent news, Freight Technologies announced a one-for-four reverse stock split, which will reduce its outstanding shares from approximately 9.1 million to about 2.2 million. This corporate action, effective May 27, 2025, will not affect the total number of authorized shares or shares issuable under existing options and warrants. Additionally, the company has issued two convertible notes valued at $1 million for the purchase of Official Trump tokens, increasing its total holdings to $2 million. The digital asset portfolio, including FET tokens and TRUMP, is valued at approximately $10.7 million.

Freight Technologies has also integrated its Fr8App platform with Bayer (OTC:BAYRY) Crop Science’s Transportation Management System, enhancing logistics efficiency through advanced data exchange. The company believes it has regained compliance with Nasdaq’s minimum stockholders’ equity requirement after financial maneuvers, including the sale of Series A4 preferred shares for net proceeds of $2.97 million and $5.2 million, respectively. In a strategic move, Freight Technologies acquired $5.2 million in FET Tokens from Fetch Compute, Inc., aligning with its vision to enhance offerings in the logistics market. This acquisition supports the company’s focus on real-time visibility and supply chain transparency.

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